New Century Financial Corporation [NYSE:NEW] is in search of a brand strategy. The company is one of the largest non- or sub-prime mortgage lenders in the United States, and today announced their first corporate branding effort with the tagline, a New Shade of Blue Chip:
As a “New Shade of Blue Chip,” New Century will update the traditional view of a “blue chip” company by emphasizing not only strong results, but also how those results are achieved…
“A New Shade of Blue Chip” will launch with an integrated marketing communications program including advertising, direct marketing, special events and Internet communications. Watch for bold advertisements beginning today. The ads will appear in major financial, trade and regional business publications including The Wall Street Journal, Barron’s, American Banker, Orange County Register and the Orange County Business Journal, among others. In addition, New Century management will celebrate th launch of “A New Shade of Blue Chip” by ringing the opening bell at the New York Stock Exchange at 6:30 a.m. PST on February 10, 2005.
New Century seeks Wall Street respect through this campaign. However, casting themselves as a New Shade of Blue Chip demonstrates that New Century should stick to their core business of sub-prime home lending, rather than attempt their own brand strategy.
Any effective brand strategy effort is an exercise in brand positioning. For positioning to be effective, it must be authentic, provide a relevant connection to the target market, and create separation from competitors. In short, effective brand positioning must create new mental real estate. Ownership of new mental real estate is a powerful business driver, whether attracting the favor of investment capital or an increase in topline sales.
A brand position relying upon an overused cliché such as “blue chip” creates nothing new within the mind of a target audience, just as advertising “New” does not create NEW mental real estate. If not staking out new and unique territory, a brand lacks a compelling reason to be committed to memory, and instead becomes part of the white noise of popular culture. If the brand is not memorable, brand positioning devolves to a Chase-The-Audience game, institutionalizing heavy year-over-year advertising expenditures to support the positioning.
In contrast, New Century could save enormous advertising dollars by pushing the brand position further. Answer the question of WHY they are a new kind of blue chip, and New Century has the makings of a captivating, memorable, and self-propelling brand. The clear leader by far in this sector is Fannie Mae’s We’re in the American Dream Business, where the aspiration is at a level so far above the mere goods and services being offered.
Up-front investment in crafting the best brand strategy is money saved later in the middle of the P&L. The more connective and memorable the brand, the less the advertising spend, and the faster the brand grows as a balance sheet asset.
A surefire way to attract respect on Wall Street.
Sub prime corporate branding new is not new - To learn more about this author, visit Steve Cranford's Website.
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Steve Cranford
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